On December 1, 2015 Corey Claflin formed a corporation called Corey's Car Crashes, Inc. to repair...
Question:
On December 1, 2015 Corey Claflin formed a corporation called Corey's Car Crashes, Inc. to repair and replace damaged vehicles for businesses and individuals. The newly formed corporation uses the following accounts:
| Cash Accounts Receivable Prepaid Rent Office Supplies Office Equipment Accounts Payable Notes Payable Unearned Repairs Fees Capital Stock Dividends Repair Fees Earned Salaries Expense |
During December the following transactions occurred:
Dec. 1 Issued 3,000 shares of capital stock to Corey Claflin and other investors in exchange for a total of $300,000 cash.
Dec. 1 Paid $30,000 to Falcon Realty for 6 months rent paid in advance.
Dec. 1 Purchased a Computer, Automobile Replacement Equipment & Furniture from Charley's Computer Consultants for $32,000 (use the account Office Equipment). Paid $8,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months).
Dec. 5 Purchased office supplies on Account from Office Depot for $2,500. Payment is due in 15 days. These supplies are expected to last for several months.
Dec. 7 Received $17,000 cash from Jolly Roger's Car Dealership in Exeter Township as advance payment for repair services to be provided.
Dec. 18 Paid employee salaries for the first two weeks of December, $7,000.
Dec. 18 Earned $12,000 in fees for car repairs & replacements completed in the first two weeks of December. $7,000 was received in cash and the remainder was billed to CCC's customers on Account (due in 10 days.)
Dec. 20 Paid the amount due to Office Depot on account from the Dec. 5th purchase.
Dec. 28 Received amount due on account from the December 18th billing to CCC's customers.
Dec. 30 Declared and paid a cash dividend of $.10 (10 cents) per share.
Instructions Journalize the December transactions.
Post the December transactions to the appropriate ledger accounts.
Prepare an Unadjusted Trial Balance.
Trial Balance:
Trial Balance is the summary of the account with its respective final balances after all the necessary entries are made. These entries are journal entries that are used to record all business transactions, adjusting entries and the closing entries. There are different types of trial balance and these are Unadjusted, Adjusted and Post Closing Trial balance.
Answer and Explanation: 1
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View this answer| Date | Journal Entries | Amount | Unadjusted Trial Balance | Amount |
|---|---|---|---|---|
| Dec-01 | Cash | 300,000 | Accounts Payable | ...
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Chapter 3 / Lesson 10Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.